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The revenue collection in Andhra Pradesh during first and second quarters of this fiscal year rose by 13.86 per cent to Rs 12,881 crore from Rs11,313 crore over corresponding period last year.
After a review meeting of state finances, Andhra Pradesh Chief Minister N. Chandrababu Naidu attributed the jump in revenue to spurt in consumption of home needs and petro products which rose to 20 per cent and 11 per cent respectively. Further, VAT and CST recorded a growth of 4 per cent.
The commercial taxes collections was up 5.96 per cent in Q1 this fiscal at Rs 6,207.41 crore (Rs 5,858.31 crore in Q1 last fiscal). In Q2 the revenue grew 22.35 per cent from Rs 5,454.73 crore to Rs 6,673.83 crore.
The Chief Minister suggested officials could study Tamil Nadu’s excise policy where the government sells liquor and has control over it.
ECONOMY MEASURES
Faced with tough financial situation and growing expenditure, the Andhra Pradesh Government is seeking to adopt economy measures reducing the non-plan expenditure by 20 per cent.
However, this reduction will not lead to any cuts on the necessary expenditure on salaries, professional and contract services, stipend and scholarships.
Yanamala Ramakrishnudu, State Minister for Finance, said in addition to the increase in revenue expenditure, there is substantial increase in Non-Plan expenditure estimated to be Rs 12,700 crore, up Rs 2,700 crore. The expenditure was up 20 per cent at Rs 17,500 crore over same period last year.
In order to keep the process going smoothly, the Finance Minister is keen that the allocations need to be made judiciously by prioritising various issues and keeping in view the revenue deficit and market borrowings. The State is exploring options for resource mobilisation to reduce revenue deficit.
Post the division of Andhra Pradesh, the new State has started with a deficit of Rs 16,000 crore and is now in the process of mobilising funds for the massive crop loan reschedule programme.
COAL RESERVES
A team of consultants would survey the coal reserves found recently in Chintalapudi in Godavari Valley and provide findings to the State within six months. The Chief Minister said once the details would be out, he would write to the Centre to explore the possibility of generating power by utilising the coal deposits.
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